A little insight into the GRT

To clear things up one final time before the Nov. 6 general election, here is what the quality of life GRT is all about.

It is a local option gross receipts tax that Otero County plans to impose to meet the goals of cultural diversity, enhancing quality of cultural programs, fostering greater access to cultural opportunities and promoting culture to further economic development.

Examples of cultural activities and groups in Otero County include senior and veterans facilities, the Otero County Fair and the New Mexico Museum of Space History, to name a few.

The tax, if passed, will be imposed on people doing business in areas outside the boundaries of Alamogordo, Tularosa and Cloudcroft. It will not affect the GRT rate on sales within the city limits of the aforementioned municipalities.

On sales outside those municipalities, the GRT would rise from its present rate of 5.8125 percent to 6.0625 percent.

But people who live in those cities still will be able to vote on the GRT. Every citizen of Otero County, including those who live within the boundaries of municipalities, can vote on the quality of life GRT. That is the way the state law is written and counties must abide by it, according to Allen Stenger, a member of Advocates for Enrichment, a group that promotes passage of the GRT.

Another question on the minds of many voters is, "How much will this cost me?"

According to a brochure distributed by Advocates for Enrichment, "the average family can expect to pay no more than the cost of a six-pack of soda each year on the tax.

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Stenger said there is no connection between the quality of life GRT and the plaza building, which is owned by the county.

The plaza building has been a source of contention between city officials, who wants to sell it and the surrounding property to a big-box pharmacy chain store, and a group of citizens who want to preserve local history. The city eventually turned the building over to the county with a two-year stipulation that it be used to house a museum.

Stenger said no funds will be distributed for the plaza building project unless the Tularosa Basin Historical Society, the group that wants to move into the building, apply for it through the proper channels.

"They would have to go through the process to apply for funds just like anyone else," he said.

Apply for funds through whom?

If the GRT passes, a nine- to 15-member cultural advisory board will be created to oversee the distribution of funding to various cultural organizations and groups within Otero County. This board would be created within 60 days of the GRT's approval. It will consist of county residents knowledgeable about activities eligible for quality of life tax funding.

County officials have said it is important that the quality of life GRT passes. The county reduced its budget for quality of life programs by 25 percent this year. Funding could be further cut for such programs if Payment in Lieu of Taxes, or PILT, ceases.

PILT is funding from the federal government to offset the loss of property taxes to counties that have untaxable federally managed lands within their boundaries; e.g., Otero County with its thousands of acres of national forest, national monument, military bases, etc. Congress extended the PILT program through 2013, but after that it could revert back to reliance on the interior appropriations funding law, according to the U.S. Senate Committee on Energy & Natural Resources website. These payments are based on 25 percent of the gross receipts generated from the national forest lands located within a county.

Commission Chairman Ronny Rardin said at an Aug. 7 public hearing that the county's budget will take a $1 million hit if PILT goes away, but the GRT is estimated to bring a little more than $1 million per year in revenue. He said the GRT won't replace PILT, but it will help.

He added that if Otero County loses PILT, the county will also lose Secure Rural Schools funding, which is provided for by the Secure Rural Schools and Community Self-Determination Act of 2000.

If the tax passes, it will be in effect for no more than 10 years.Contact Michael Johnson at mjohnson@alamogordonews.com. Follow him on Twitter @alamoeditormike.